Growth Is Addictive. But Value Is What Sells.

In today’s business world, growth is worshipped. Founders brag about headcount, revenue milestones, and landing on “fastest growing” lists. But if your endgame is to sell—to walk away with real money and real freedom—indiscriminate growth might actually work against you.

Here’s the truth most entrepreneurs overlook: revenue growth doesn’t always equal value growth. Especially not in the eyes of a strategic buyer.

Strategic Buyers Pay for Focus, Not Flash

Strategic acquirers—the ones who pay top dollar—aren’t looking for companies that do everything. They’re looking for the thing they can’t easily do themselves. The more unique, focused, and irreplaceable your offering is, the more attractive (and valuable) you become.

Take Michael Lieberman, co-founder of Datastay, a company that built product lifecycle management software for brake manufacturers. That’s all they did. And they did it better than anyone else. Lieberman was the go-to guy in that niche—he knew the players, the needs, the events. He didn’t try to be everything to everyone. He focused.

Then Autodesk came knocking. A billion-dollar software giant, they didn’t want Datastay because it was big. They wanted it because it dominated one niche they didn’t have access to—and they paid Lieberman ten times revenue for his small, nine-person company.

If Lieberman had chased growth for growth’s sake—offering a bunch of other software, expanding to unrelated industries—he would have diluted his value. Instead, he stayed narrow, went deep, and walked away with a massive payday.

Private Equity vs. Strategic Buyers: Know Who You’re Building For

Private equity buyers think in spreadsheets. They’re buying cash flow and calculating based on your EBITDA. If you’ve got a healthy, diversified business with strong margins and solid systems, you’ll get fair value.

But strategic buyers? They’re buying upside. They don’t need your team or your generalist services. They want your unfair advantage—your puzzle piece that fits perfectly into their bigger picture.

And the more focused and specialized that piece is, the more it’s worth.

Build a Business That’s Hard to Ignore—Not Easy to Copy

It’s tempting to chase every opportunity that brings in revenue. But if you’re serious about selling, ask yourself what you want to be known for. What are you building that no one else can replicate quickly or easily?

Because in the end, it’s not about how big your business is—it’s about how hard it would be to replace.

Ready to turn your business into something buyers want?

Let’s talk about how to position what you’ve built—and where to focus next.

📩 Email: paulwildrick@provengain.com
📞 Call: 925.963.9665
🌐 Visit: www.provengain.com